Fair Isaac's (NYSE:FICO) stock price has fallen roughly 30% from its recent high, mostly due to multiple adjustments from the recent market turmoil. Despite the drop in share price, I believe that Fair Isaac has a strong track record with a strong brand and growing switching costs. At $297, however, it is overvalued by roughly 16% based on my base-case assumptions.
Fair Isaac is tackling a large total addressable market while posting decent growth
The company has achieved decent revenue growth in recent years. Revenue has grown from $605M in 2010 to $1.2B